By Freddy Sebastian

Cadence Design Systems posted higher third-quarter revenue as demand continued for its AI products, prompting it to raise its forecast for the year

The software and electronics company, which produces several AI products including electronic design automation systems used in semiconductors, reported $287.1 million in net income, or $1.05 a share, up from $238.1 million, or 87 cents a share, a year earlier.

Adjusted earnings were $1.93 a share. Analysts expected $1.79 a share, based on FactSet estimates.

Shares recently ticked down 1.6% to $345.95 in after-hours trading.

The company said its non-adjusted earnings were up as it deepened strategic relationships across the AI ecosystem.

Non-GAAP operation margin reached 47.6% compared with 44.8% in the year-earlier period while backlog reached $7 billion at the end of the third quarter.

Cadence posted $1.34 billion in revenue, up from $1.22 billion the year prior. Analysts were expecting revenue of $1.32 billion.

For fiscal 2025, Cadence expects revenue at $5.26 billion to $5.29 billion. Analysts are expecting revenue of $5.25 billion.

The company again boosted its adjusted earnings guidance for the year to $7.02 to $7.08 a share, up from a previous range of $6.85 to $6.95. Analysts expect adjusted earnings of $6.93 a share.

Non-GAAP operating margin is expected between 43.9% and 44.9%.

Write to Freddy Sebastian at freddy.sebastian@wsj.com

(END) Dow Jones Newswires

October 27, 2025 17:04 ET (21:04 GMT)

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